SINGAPORE: Gold prices dipped in Asian trade on Monday, as an uptick in the dollar dimmed the appeal of the safe-haven metal, although a pullback in US Treasury yields and prospects of a prolonged accommodative interest rate environment limited losses.
Spot gold was down 0.4% at $1,883.10 per ounce, as of 0637 GMT, after rising more than 1% in the previous session, as last month’s US non-farm payrolls fell short of expectations.
US gold futures eased 0.3% to $1,886.
“We are seeing some long covering in Asia today, with risk hedges being unwound after an uneventful news weekend, helped by a slightly stronger US dollar and with bitcoin rallying,” Jeffrey Halley, OANDA senior market analyst, said.
“Although gold has corrected in recent sessions, the bullish fundamentals remain in place. Only a sharp steepening of the US yield curve is likely to change that.”
Spot gold may retreat into a range of $1,864 to $1,877 per ounce, according to Reuters technical analyst Wang Tao.